Oil Prices Headed Up Again.

[FaninAma]

It looks like oil found support at $50 a barrel. The question is whether bouncing off of the $50 support line was a temporary pause in the decline or whether oil will now head back up and reach new highs above $80 or $90 a barrel.

I think that the price will basically bounce around between the $50 to $60 range for several months before heading north and establishing new highs. If a politcal crisis or natural disaster occurs in the near future the turnaround could happen sooner.

It is interesting that precious metals haven't had much of a retracing of their runnup. I think investors are using this sector as a hedge against volatility.

[OklahomaTuba]

Refiners are still near capacity, even with many of the build outs and upgrades coming on line. Its only a bandaide and It isn't getting any better and it won't no matter what we do. Energy conservation can only do so much.

More capacity has to be built, and more sources of energy need to be developed and used. Drill and invest in alternative renewables like there is no tomorrow.

[Mongo]

Bwahahhahaa, more work for me. Bwahahahaha.:D

[OklahomaTuba]

Bwahahhahaa, more work for me. Bwahahahaha.:D
Yeah, a lot of people don't realize how good $40.00 p/b oil is for this state.

Unfortunatly, with the booms come the busts. Although with global demand and insecurity being so high it may be a while until the high prices go away.

WIth our economy so strong, being able to withstand these energy prices is a good thing. However, If India or China's economy stages a surprise collapse, which is unlikely anytime soon, then we could be in for some real fun.

[TheHumanAlphabet]

$50 dollars/barrel is probably closer to the true price and will be supportable as long as or until something happens in the Mid East...

[TopDaugIn2000]

QUICK! Fill up plenty of jugs with gas and store them on your patio! STAT!

[Petro-Sooner]

Bwahahhahaa, more work for me. Bwahahahaha.:D

:texan: :D

[Chuck Bao]

:texan: :D

You guys need to do more drilling and less posting. :mad:

In southern Oklahoma, if you will.

:D

[Chuck Bao]

This probably isn't the right thread, but I found this Scientific American article about premium gasoline interesting.

http://sciam.com/article.cfm?chanID=&articleID=373086C9-E7F2-99DF-385F3705197C1D4F

[soonerboomer93]

whoo hoo, higher prices, more work

[Scott D]

$50 dollars/barrel is probably closer to the true price and will be supportable as long as or until something happens in the Mid East...

or until it's time to artificially create a higher profit margin coinciding with an 'attempt' to reduce consumption.

[TheHumanAlphabet]

or until it's time to artificially create a higher profit margin coinciding with an 'attempt' to reduce consumption.

If you mean by the speculators, then I agree.

If you mean by the producers, then I don't agree.

The commodity brokers and speculators are the one with the power. A fart in the wind could cause the price to jump...So I don't trust the commodity people.

[picasso]

You guys need to do more drilling and less posting. :mad:

In southern Oklahoma, if you will.

:D
I been drilling all over green country since I was in college.

[Scott D]

If you mean by the speculators, then I agree.

If you mean by the producers, then I don't agree.

The commodity brokers and speculators are the one with the power. A fart in the wind could cause the price to jump...So I don't trust the commodity people.

I mean speculators/distributors. You know, the ones who control the end stage profits. Combine that with any attempt by the current government to reduce consumption = price per barrel going up again.

[TheHumanAlphabet]

Well we all know big oil is the debil ;) and we must tax big oil into submission...

I have no problems with a progressive energy policy that encourages all and various forms of energy and fair return on contractsfor mineral royalties. But, I have fundamental problems in burden taxing of a specific sector in order to penalize them for profits during times of high prices. I didn't see Congress trying to give big oil tax revenues when the price was $12/barrel.

The projects today come at high prices. I have specifically worked on several projects - say 10 that were each in the neighborhood of 1-5 billion $ projects. We don't have any "cheap" oil or "cheap" projects any more.

[SoonerJack]

So how do we feel about Bush's tax credit for vehicles over like the huge gross vehicle weight (Hummers)? Isn't it supposed to go away soon? A neighbor down the street bought one for her swimmin' pool business. It won't fit in her garage. Idiot.

[Scott D]

I worded my last post on the matter poorly. I meant to imply that it sets the stage for a quick rise in the price per barrel, with both sides (govt. and big oil) being able to point at the other and say "It's their fault!". I find it to be very very slick. :)

[1stTimeCaller]

the risk is high when it comes to finding hydrocarbons. Why shouldn't the reward be high when you find them?

[Petro-Sooner]

the risk is high when it comes to finding hydrocarbons. Why shouldn't the reward be high when you find them?

Preach it 1stTime!! Its not a easy as you think to find it and its very expensive to drill. I sometimes think people believe all you have to do is stick a whole in the ground and it just comes flowing up.

[Scott D]

Preach it 1stTime!! Its not a easy as you think to find it and its very expensive to drill. I sometimes think people believe all you have to do is stick a whole in the ground and it just comes flowing up.

everyone knows you just gotta be a hillbilly who is out huntin' and can't shoot a shotgun for **** and happens to shoot the side of a hill.

[OUDoc]

Preach it 1stTime!! Its not a easy as you think to find it and its very expensive to drill. I sometimes think people believe all you have to do is stick a whole in the ground and it just comes flowing up.
Jed Clampett didn't try too hard.

Edit: Aaaarrgghhh, Scott D! :D

[Mjcpr]

Preach it 1stTime!! Its not a easy as you think to find it and its very expensive to drill. I sometimes think people believe all you have to do is stick a whole in the ground and it just comes flowing up.

Yes, that's probably what is nibbling away at those multi-billion dollar quarterly profits posted recently.

:D

[Chuck Bao]

I been drilling all over green country since I was in college.

Yeah and Picasso seems to be making out quite fine.

More work from you loafers and the energy shortage is solved in no time. ;)

[OUDoc]

Yeah and Picasso seems to be making out quite fine.

More work from you loafers and the energy shortage is solved in no time. ;)
But penicillin prices would be ridiculous.